Do hosts in the UK submit tax for hosting biz?

B

BlackStorm

New member
Just wanted to know if most hosts in the UK comply with tax laws if they own a hosting business?
I know that most dont have to simply because they dont earn enough from it to pay tax on it.
 
Here in Norway I think you have to pay 24% no matter how much you earn. Unless you are under 18 like me in which case you only pay tax if you get more then 21,000 kr a month or something like that.

24% is the standard yearly tax fee. I'm not really sure what it would be on a hosting-company. All I know is that books are not taxed over here. But still they are more expensive then England.
 
Noway may have high taxes but I don't mind. A lot of it goes to peacekeeper operations and so on. But most of our comes from Oil of course.
 
Ok looked about a bit and got some information.
If you are a sole trader you must earn 56k+ a year to start paying tax.
I didnt think it would be so high.
Suppose its good for small businesses to get started without having to worry about tax.
 
Google, you'd think 17.5% wasn't too bad, but remember most of our general tax & VAT money goes into asylum funds. So at the end of the day the average British person sees no good come from it in our country. Yours may be 7% higher but the things the money goes to I'm sure are far better, like peacekeeping as you said before. You have to weigh up the pros & cons don't you? So when it comes to tax, although we may not be taxed that much in comparison, we don't get any better off because of it in the kinds of things government money should go to, to benefit us. I'm sure this is kinda' going off topic but it's true.

James
 
I think you are getting VAT and Tax a little mixed up. If your company turns over £56,000, then you must start to charge VAT on your produts/ services.

For tax, if your profits are over £4,500 (not quite the offical figure, but its there are there abouts!) then you will be charged Tax.

It's something like that anyway. Best to get proper advise for your local Tax office.

Jay
 
£56,000 lol better stay that high also... I dont thiink i will EVER get profits that big......
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I don't think profit as such, just based on turnover. You must chatge VAT (17.5%) on a turnover of £56,000 and above.

Jay
 
Taxes are higher than all hell in Europe.... but I guess that is why every one has health coverage etc... Here in the USA (I live here originally from East Grinstead, England) its 6% sales tax on purchased goods. There are no taxes for services Virtual hosting is considered a service.
 
Yeah EU does seem a bit more expensive for just about everything, webhosting and shells are usually a bit more, I think it is because of the increased cost of bandwidth over there.
 
Half of Norways yearly population increase is immigrants. If you walk around flats not far from Oslo you really start to notice it.
 
Designr said:
I think you are getting VAT and Tax a little mixed up. If your company turns over £56,000, then you must start to charge VAT on your produts/ services.

For tax, if your profits are over £4,500 (not quite the offical figure, but its there are there abouts!) then you will be charged Tax.

It's something like that anyway. Best to get proper advise for your local Tax office.

Jay
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You are correct but only to a certain degree. If hosting is your only income then your tax code will specify your tax-free allowance.

(EG: A tax code of 474L is £4740. Just take the numbers and multiply by ten)

You do not have to pay tax on your tax-free income each year.

If hosting is not your only income, you will have to pay income tax on the very first GBP (£) you earn because your main income will be eligible for your tax allowance (especially if your company uses PAYE). To stay legal, you will need to apply for a tax return and itemise your entire years income including all the details from your P60 from your main employment.

VAT is a different matter. Currently if your income is below £56,000 you do not need to register for VAT but you can if you wish. Registering for VAT is very useful if you are setting up business and / or your main customers are businesses. Everything you purchase for your business may be eligible for a VAT refund but your clients will be charged VAT on their prices. This will not factor much if your clients are VAT registered companies as they will be able to reclaim this.
 
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